Gold Prices Are Overdue For A Bounce, But Prices Continue To Trade Lower

Gold prices are overdue for a bounce, but prices continue to trade lower. Persistent trends like this can sometimes continue longer than most expect. Miners broke sharply and should continue to drop for a few more trading days before attempting a rally.

There isn’t enough data to support further declines into an 8-year cycle low but the evidence in mounting. Silver prices breaking sharply below the $15.83 level will void the positive divergence advocating for a move below the 2015 $13.62 low.

-US DOLLAR- The dollar closed well above the trendline and the December 8th 99.25 low is confirmed.

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-GOLD-Prices continued lower into the close reaching $1,140. No signs of a reversal, and it would take a close above the 10-day EMA to signal a potential bottom.

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-SILVER- Prices need to break below the blue trendline to setup a drop below $16.15. Prices dropping below $15.83 will increase the odds of an 8-year cycle drop below the 2015 $13.62 low.

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-TLT- Prices closed sharply below the green trendline. The next support level arrives at 115 (200-week MA) and then 110 (2015 low).

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-XAU- Prices topped at the 16-day marker and decisively broken below the trendline. Prices should head lower for a few more trading days before attempting a rally.

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-GDX- Prices crashed into the close and will likely head lower for a few more trading days before attempting a rally.

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-GDXJ- Junior miners crashed through the lower triangle boundary on large volume. Another wave of selling has begun.

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-WTIC- Oil crashed back below the red trendline and the move to $54.51 may have been a false breakout. A close below $50.75 will signal that a correction has begun.

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I’m changing the buy signals to neutral until we see significant signs of bottoming.